Eicher Motors just smashed its 52-week high at ₹7360. Wow, that's a rocket from ₹4646 lows—over 58% up in a year. Traders are buzzing: is this the start of another wild ride?
Why the Explosive Breakout?
Royal Enfield sales exploded lately. November hit 100,670 bikes, up 22% year-on-year. Exports jumped too. Blame it on new launches like Himalayan Mana Black at ₹3.37 lakh. Market loves it—stock's up 3.44% in five days straight. Kinda like that friend who skips gym but suddenly bulks up.
Market cap sits at ₹2 lakh crore plus. P/E ratio? Around 39-42, higher than peers like Bajaj Auto's 30. Industry average hovers near 30-35, so premium pricing here. Debt's peanuts at ₹184 crore—almost debt-free. Dividend yield 0.97%, ROE 25%, ROCE 30%. Profit grew 21% CAGR over 5 years, cash flow strong at ₹3980 crore operating last year. Debt-to-equity? Super low. YoY profit up solid too.
Started in 1982 by Eicher Group. Vikram Lal founded it, family still leads. History? Trucks first in '88. Big move: grabbed Royal Enfield in '94, revived the Bullet legend. Now joint venture with Volvo for VECV trucks/buses. Cool, right? From rusty trucks to global bike icons.
Two wheels rule via Royal Enfield—Classic 350, Himalayan, mid-size beasts. Exports shine. Commercial side: Eicher trucks, buses via VECV. No fluff EVs yet, but premium bikes pull 80% revenue. Model's simple: build loyal fans, export smart.
2026? Could hit ₹8900-9100 if sales keep roaring. 2030? Analysts eye ₹28,000, riding EV push and exports. 2035? Stretch to ₹50,000+ if India bikes boom. 2040? Wild guess ₹1 lakh, assuming 15-20% CAGR like past decade. But hey, markets flip—don't bet the farm. Past 1-year 52% return, 5-year 25% CAGR. Fingers crossed.
